Boeing builds new logistics center in India

06/03/2023

According to Reuters, Boeing Company (BA.N) plans to invest $ 24 million in building a new logistics center for aircraft equipment and parts.

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Sharing with Reuters on February 13, Salil Gupte, President of Boeing India said that the new center will help strengthen the company's position in the domestic market amid growing aircraft orders.

Air India is expected to announce a major deal in February for the purchase of nearly 500 jets. The total value is up to more than 100 billion USD at the listed price. The number of new aircraft will be divided equally between Boeing and Airbus.

"India is one of the important civil aviation markets in the world... There will be great opportunities to exploit both narrow-body and wide-body aircraft in the near future," said Mr. Salil Gupte.

With the new hub, Boeing aims to speed access to key components, making aircraft uptime for airlines more efficient. At the same time, the opening of a new freight point that specializes in logistics only helps to reduce flight cancellations or delays due to maintenance issues.

A Boeing maintenance center in Everett, US, January 21, 2020.

This decision comes at a time when Boeing is gradually taking steps to penetrate deeper into the Indian air transport and services market. According to Reuters, this unit is considered to have a lot of potentials to compete directly with rival Airbus (AIR.PA). Boeing is even expected to take on orders from the newly established airline Akasa Air and rival SpiceJet (SPJT.NS).

On the other hand, Boeing also made a forecast that Indian airlines in the future may need a large number of aircraft. Specifically, in the next 20 years, the country will need about 2,200 aircraft, of which the narrow-body type accounts for the majority. The president of Boeing India expects this to be an area of focus for the company in the future.

"As the middle class is growing larger, along with India being in the top economic growth countries in the world, there are many opportunities for the number of domestic and international air travelers to grow strongly. . That means we need to optimize the quality of service to ensure passengers have a complete, memorable experience and retain them for as long as possible," concluded Mr. Salil Gupte.